Historic Insurance Products - Customer Redress

RNS Number : 9212K

Brown (N.) Group PLC

13 July 2017

 

July 13, 2017 

N BROWN GROUP PLC

HISTORIC GENERAL INSURANCE PRODUCTS - POTENTIAL CUSTOMER REDRESS

N Brown Group Plc (the "Group") today announces that it has identified flaws in certain general insurance products which were provided by a third party insurance underwriter and sold by the Group to its customers between 2006 and 2014. This follows a review prompted by a recent industry-wide request from the FCA that firms ensure that general insurance products and add-ons offer value for their customers. The vast majority of these products were sold to the Group's customers in the period leading up to, and including, 2011. Sales of the relevant products ceased in early 2014.

Following an assessment of the cost of potential customer redress, the Group expects to incur an exceptional cost in this year's income statement in the range of £35 million to £40 million. However, the Group anticipates that there may be mitigating actions to reduce the overall net cost. The cashflow impact of this is forecast to occur from FY19 onward, and the Group anticipates funding the full cost of customer redress from existing resources.

The Group confirms that this matter will not impact its underlying operations, nor the risk profile of the Group's current and future customer or debtor balances.  The Group continues to demonstrate strong underlying trading performance in line with its 20 June 2017 trading statement.

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For further information:

N Brown Group
Craig Lovelace, CFO                        Theresa Casey, Company Secretary	0161 238 2338 0161 238 1845
MHP
John Olsen / Simon Hockridge / Gina Bell	0203 128 8100 [e-mail]

 

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